Iraqi expert warns: Hormuz closure would paralyze Gulf

 Shafaq News/ The closure of the Strait of Hormuz would bring the Gulf region to a standstill and throw global energy markets into chaos, Iraqi economist Hilal al-Taan warned on Tuesday. 

Al-Taan explained to Shafaq News that any move to shut the strait would restrict maritime traffic, halt oil exports, and raise shipping and insurance costs. “It would paralyze the Gulf and impact the entire world,” he cautioned, noting that major ports like Jebel Ali in the UAE would be directly affected.

He stressed that oil-dependent economies like  Iraq, Kuwait, and Bahrain would suffer severe financial consequences, as the shipping lane is a vital artery for their exports. 

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints. Roughly 18 to 19 million barrels of oil, condensates, and fuel—about one-fifth of global consumption—pass through it daily, along with nearly 11 billion cubic feet of liquefied natural gas.

The warning follows statements by Iranian lawmaker Brigadier General Esmail Kowsari, who confirmed that Tehran is seriously considering closing the maritime corridor in response to Israeli airstrikes. “We are studying the matter carefully and will act decisively if necessary.”

EXCERPTS FROM MARKZ: We have seen some interesting pairings that point towards a much increased value

 EXCERPTS FROM MARKZ: We have seen some interesting pairings that point towards a much increased value

Member: Mark do you think bonds going quiet right before the Iran situation is a coincidence??

MZ: Right now everything has gone quiet so I believe its coming from the Treasury level….or the Sovereign level…….They could have gone quiet for 2-3 reasons. The most likely reason is to cloud the timing….or because we are close. 

Member: anything on CMKX?

MZ: Nothing new yet….but not for lack of trying. 

Member: Rumor has it that Iraqi dinar is at 6.24 on coinbase? do you concur ? thanks!

MZ: I do not concur. But we have seen some interesting pairings that point towards a much increased value. But we can’t do anything with it yet. We will keep watching it. 

GINGER: I've been told that the last 58 of these trigger platforms are currently in "finishing mode"

 

Iraq faces growing economic strain due to Israel-Iran conflict

 Shafaq News/ Iraq’s economy is already showing signs of strain as the Israel-Iran conflict enters its sixth day, despite the country’s non-involvement in the fighting, a leading economic expert told Shafaq News on Wednesday.

Dr. Nawar al-Saadi, a professor of international economics, told Shafaq News that Iraq’s geographic location, heavy reliance on oil, and integration into a sensitive regional network leave it vulnerable to the fallout of the escalating hostilities.

“So far, we’re seeing three immediate economic consequences,” al-Saadi explained. “First, the Iraqi dinar is weakening as the dollar exchange rate rises. This reflects fears that the conflict could spread, affecting oil exports or state revenues, which in turn fuels inflation through higher import costs.”

The second impact, he said, is market stagnation. “Uncertainty is freezing investment and commercial activity. Wars interrupt economic planning and scare off capital, especially when Iraq is seen as part of a high-risk geopolitical zone.”

According to al-Saadi, the increase in food prices is another impact, “Concerns over supply chain disruptions have already prompted speculative behavior and hoarding among traders. This poses a direct threat to Iraq’s food security, which is already fragile due to high import dependence.”

The professor warned that if the conflict intensifies or persists, the consequences could become “far more severe.”

“Iraq’s oil exports rely almost entirely on the Gulf, particularly the Strait of Hormuz. If that route is disrupted, even briefly, Iraq could lose billions in revenue and plunge into a financial crisis its oil-dependent budget cannot withstand.”

Al-Saadi also highlighted the risk of domestic instability, pointing out that the longer the war drags on, the greater the chance that regional power struggles will spill into Iraq. “If foreign interests or US assets are targeted, or southern cities become flashpoints, it could erode what’s left of Iraq’s economic stability.”

TIDBIT FROM MILITIAMAN

 Militia Man  

Article quote:  "...representatives called...to ban cash payments within the government institutions...This means 80% of paper money will be transferred to cards...

These steps should be implemented increasingly to move cash out of homes and pockets and into banks. " 

 They're trying to and have been for quite a long time reducing the cash in circulation which is a good thing.

Chase Bank’s is showing fixed exchange rates of $40 per IQD and $2.51 per VND #iqd #iraq

 

IBBC appoints new Baghdad Office Manager

 Ali Mashkour joins IBBC from member company MHD International. He is Iraqi British and has been based in Baghdad for the past ten years, working in projects across infrastructure, security, transport and government sectors, managing multi-disciplinary teams and engaging senior stakeholders across both public and private sectors.

In his new role, Ali will work in the Baghdad and Erbil offices, supporting members and the organisation's overall objectives and with our Honorary Member Representative Mohammed Alsaadi and our Honorary Representative for Kurdistan and the South of Iraq, Dr Ali Jawad.

Christophe Michels, MD of IBBC said:

"We  are pleased to welcome Ali Mashkour to our team, knowing he has to fill the sad gap that Muhanad Khattab left when he died last month, we have every expectation Ali will bring us new energy and insights to the role, which is of increasing importance to IBBC as our Iraqi membership rapidly grows and are holding more events and conferences in the country."

Ali can be contacted at ali.mashkour@webuildiraq.org